What is Comprehensive Auto Insurance?
Comprehensive auto insurance will help you to pay for damages to your vehicle caused by fire, hail, flood, theft, and even impact with a bird or animal and falling objects or vandalism. Comprehensive auto insurance contains a facility for a range of deductibles which are set by you when you choose your policy.
When you buy your comprehensive auto insurance you will be asked to decide on a deductible. Of course the higher the deductible the lower your premiums are likely to be. However it will mean more money out of your own pocket. Let's look at an example.
If you choose a deductible of $1000 on your comprehensive auto insurance policy and you are involved in an accident you will have to pay up to $1000 out of your own pocket for repairs to your car or its replacement. So while a higher deductible will save money or your insurance premiums you will need to make sure you have the money to back up your choice of deductible.
Should you forgo comprehensive auto insurance coverage? In some cases it may be possible to exclude this type of coverage from your auto insurance policy. If your car is an older model this may be a good idea. In general, if the value of your car is less than ten times the amount of your premium it may not make sense to add comprehensive coverage to your auto insurance package.
Consult your auto dealer or bank to find out the real value of the model of car you drive. You can also consult Kelley's Blue Book (www.kbb.com). When it's time for renewing your policy make sure you don't need to include comprehensive auto insurance coverage for new cars you may have purchased.
